WATSONVILLE - The owner of a Watsonville slaughterhouse where malnourished and injured livestock were removed last spring pleaded no contest earlier this month to two counts of animal neglect.

The investigation began when Animal Services officer Todd Stosuy noticed a cow bleeding profusely from its horn in a Lee Road field on May 1, 2008.

As part of his plea, which was made Thursday, slaughterhouse owner Efrain Toledo Martinez, 54, will pay $868 in restitution to Animal Services and $190 in court costs.

Initially, Stosuy had cited Martinez for failure to provide food and water and proper care for his animals at the slaughterhouse and feedlot. Animal Services took custody of the injured cow, a dozen underweight goats that were coughing and had hoof problems, a malnourished sheep and two rabbits living on bread.

The remaining livestock, including pigs, chickens and additional goats, sheep and cows, appeared healthy and were left at the feedlot next to the slaughtering plant.

But during the ensuing probe, which expanded to include state Department of Food and Agriculture officials, Animal Services impounded more livestock. All together, 20 adult goats, four kids, two sheep, two rabbits and the injured cow were taken from Martinez.

One goat was so sick, she couldn't walk on her own and was euthanized. Another goat, which was severely emaciated, recovered and is living at the Farm Sanctuary in Orland, according to Animal Services. Other animals were relocated to The Animal Place, a farm sanctuary near Vacaville,

State officials inspected the facility in May 2008, but the business, considered a "custom slaughterhouse," was allowed to continue operations.

The state Department of Food and Agriculture - not the U.S. Department of Agriculture - regulates custom slaughterhouses, including the Toledo Harkins Slough Ranch. The facilities are small, specialty slaughterhouses and there are about 50 across the state, according to officials. The facilities are licensed to kill livestock and market the meat.